Educomp Solutions shines after joint venture with Ebix Software

Educomp Solutions’ subsidiary company has entered into joint venture agreement with Ebix Software to incorporate a new company. The newly formed company is Ebix Educomp Learning. Educomp Software an indirect subsidiary of Educomp Solutions holds 49 per cent in Ebix Educomp Learning and remaining 51 per cent is held by Ebix Software India.

The purpose of the joint venture is to bid for education related government tenders. Meanwhile, Ebix Software India and Educomp Software will complement their operating expertise and target large tenders, with Ebix Software India also acting as the funding partner.

On the financial front, Educomp Solutions’ revenue has decreased by 3.61 per cent to Rs 500 crore in FY16 as compared to previous fiscal year. The company has posted EBITDA loss of Rs 26.74 crore in FY16 against EBITDA loss of Rs 48.81 crore in FY15. It has reported a net loss of Rs 447 crore in FY16 while net loss of Rs 1642 crore in FY15.

The share price of Educomp Solutions has increased by 9.34 per cent on bourses in early trades; and is trading at Rs 14.05 on an intraday basis.

Educomp Solutions is primarily engaged in the provision of educational support services. The company operates through four segments viz. Higher Learning Solutions (HLS); School Learning Solutions (SLS); K-12 Schools; Online, Supplemental and Global business (OSG). Its services include Little Millennium, a chain of pre-schools; Educomp smartclass, a digital interactive learning solution; Edureach; smart school, a digital learning system.